Bermuda
|
1-15259
|
98-0214719
|
||
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(I.R.S. Employer
Identification No.) |
110 Pitts Bay Road
Pembroke HM 08 Bermuda |
P.O. Box HM 1282
Hamilton HM FX Bermuda |
(Address, Including Zip Code,
of Principal Executive Offices) |
(Mailing Address)
|
ITEM 2.02.
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
|
ITEM 9.01.
|
FINANCIAL STATEMENTS AND EXHIBITS.
|
99.1 |
ARGO GROUP INTERNATIONAL HOLDINGS, LTD.
|
|||
Dated: April 29, 2019
|
By:
|
/s/
Jay S. Bullock
|
|
Name:
Jay S. Bullock
|
|||
Title: Executive Vice President and Chief Financial Officer
|
Susan Spivak Bernstein
|
David Snowden
|
Senior Vice President, Investor Relations
|
Senior Vice President, Communications & Media
|
212.607.8835
|
210.321.2104
|
susan.spivak@argolimited.com
|
david.snowden@argogroupus.com
|
Net Income
Per Diluted Share
$2.63
↑ 270.4%
from Q1 2018
|
Adjusted Operating
Income Per Diluted
Share
(1)
$1.18
↑ 12.4%
from Q1 2018
|
Gross Written
Premiums
$760.8M
↑ 7.1%
from Q1 2018
|
Combined
Ratio
94.8%
↓ 100 basis pts
from Q1 2018
|
Book Value
Per Share
$55.23
↑ 8.0%
(1)
from Q4 2018
|
“Our strong first quarter 2019 results demonstrate our focus on delivering value to shareholders.
Our annualized ROE of 20.1% in the first quarter is an outstanding achievement. The 9.1% annualized operating ROE for the quarter, a 100 basis point improvement year-over-year, reflects
strong
momentum toward our run rate objective of 10%. In addition, book value per share increased 8.0% from the beginning of the year
," said Mark E. Watson III, CEO.
"These results were enabled by
a 7.1% increase in gross
written
premiums
,
with a 10.2% rise in the U.S. Operations, an improvement in our expense ratio, and a 26.6% increase in our underwriting income.
We expect our strategy to continue to deliver superior and sustainable returns to shareholders."
|
HIGHLIGHTS FOR THE THREE MONTHS
ENDED MARCH 31, 2019 |
|||
●
|
Net income
was $91.2 million or $2.63 per diluted share, compared to net income of $24.8 million or $0.71 per diluted share for the 2018 first quarter
, an increase of
270.4% compared to the 2018 first quarter
.
The 2019 first quarter net income
included pre-tax net gains related to changes in the fair value of equity securities of $54.2 million, compared to pre-tax net losses related to changes in the fair value of equity securities of $30.9 million in the 2018 first quarter.
These changes in fair value are included as a component of Net Realized Gains and Losses on the income statement.
|
●
|
Adjusted operating
income
(1)(2)
increased 12.6% to $41.1 million or $1.18 per diluted share, compared to adjusted operating income of $36.5 million or $1.05 per diluted share for the 2018 first
quarter.
Underwriting income
(1)
,
a component of adjusted operating income, increased 26.6% to $21.9 million, compared to $17.3 million in the 2018 first quarter.
As previously discussed, for purposes of calculating adjusted operating income, effective January 1, 2019, the
company prospectively decreased its assumed effective tax rate to 15% from 20%. This change is in response to ongoing tax planning strategies implemented following the 2018 change in U.S. corporate tax rate from 35% to 21%.
|
●
|
Gross written
premiums
grew 7.1% to $760.8 million, compared to $710.5 million for the 2018 first quarter. U.S. Operations grew 10.2% to $410.7 million, compared to $372.8 million for the 2018 first quarter. International Operations grew 3.7%
to $350.1 million, compared to $337.7 million for the 2018 first quarter.
|
●
|
The combined ratio
was 94.8% compared to 95.8% for the 2018 first quarter. The loss and expense ratios for the 2019 first quarter were 56.6% and 38.2%, respectively, compared to 57.2% and 38.6%, respectively, for the 2018 first quarter. The current accident
year, ex-CAT combined ratio was 94.1%, compared to 95.3% in the 2018 first quarter.
|
●
|
Catastrophe losses
were $5.5 million, compared to $4.3 million for the 2018 first quarter.
|
●
|
Net favorable
prior-year reserve development
was $2.5 million, compared to favorable prior-year development of $2.0 million in the 2018 first quarter.
|
●
|
Net investment
income
decreased 5.8% to $33.9 million, compared to $36.0 million in the 2018 first quarter.
Net investment income on the core portfolio increased 17.2% to $32.0 million, compared to $27.3 million in the
2018 first quarter. This increase was primarily due to an increase in the invested asset base and higher investment yields.
Alternative investments, which are reported on a lag, contributed $1.9 million in the 2019 first quarter, compared
to $8.7 million in the 2018 first quarter, a decrease of 78.2%. This decline was primarily due to the volatility in the securities market during the 2018 fourth quarter.
|
●
|
The quarterly cash dividend was increased by 15% to $0.31 per share. Since 2010, cash dividends have increased by approximately 300%. The Company
did not purchase any shares of its common stock during the 2019 first quarter.
|
●
|
Book value
per share increased 8.0%
(1)
to $55.23 at March 31, 2019, compared to $51.43 at December 31, 2018.
|
Notes | |
●
|
All references to catastrophe losses are pre-tax.
|
●
|
Point impacts on the combined ratio are calculated as the difference between the reported combined ratio and the
combined ratio excluding incurred catastrophe losses and associated reinstatement and other catastrophe-related premium adjustments.
|
•
|
Gross written premiums in the 2019 first quarter of $410.7 million increased $37.9 million or 10.2% compared to the 2018 first
quarter. This growth was achieved in Property, Professional, and Specialty lines, while writings within Liability were consistent with amounts written in the 2018 first quarter. The overall increase in gross written premiums reflects the
continued execution of strategic growth and digital initiatives, and a new fronted program within the Property lines, while still executing on appropriate risk selection and exposure management actions.
|
•
|
Net earned premiums in the 2019 first quarter of $273.8 million were up $11.5 million or 4.4% from the 2018 first quarter, driven
by the aforementioned growth in gross written premiums partially offset by the increased use of reinsurance. All major lines of business, with the exception of Property, reported growth in net earned premiums compared to the 2018 first
quarter. The decline in Property related to the aforementioned increased use of reinsurance.
|
•
|
The loss ratio for the 2019 first quarter was 56.5%, compared to 59.5% for the 2018 first quarter, an improvement of 3.0 points.
The lower 2019 first quarter ratio is driven by a 1.8 point improvement in the current accident year ex-CAT loss ratio, an improvement of 1.1 points from an increase in favorable net prior-year reserve development, and an improvement of
0.1 points from decreased catastrophe-related losses.
|
•
|
The current accident year ex-CAT loss ratio for the 2019 first quarter was 56.5%, compared to 58.3% for the 2018 first quarter. The
1.8 point improvement in the current accident year ex-CAT loss ratio was driven in large part by both increased rates in most lines of business and improved business mix trends. In addition, the 2018 first quarter included a number of
discrete non-CAT, weather-related property losses.
|
•
|
Net favorable prior-year reserve development for the 2019 first quarter was $4.0 million, compared to $1.0 million in the 2018
first quarter. The current quarter favorable development related primarily to Liability and Specialty lines, partially offset by unfavorable development in Professional lines.
|
•
|
Catastrophe losses for the 2019 first quarter were $4.0 million compared to catastrophe losses of $4.3 million in the 2018 first
quarter.
|
•
|
The expense ratio for the 2019 first quarter was 34.4%, which is consistent with the 2018 first quarter (which was also 34.4%). The
2019 first quarter reflected lower acquisition costs associated with increased ceding commissions that were offset by continued strategic investments in people and technology, including digital initiatives in support of the aforementioned
10.2% gross written premium growth.
|
•
|
Underwriting income for the 2019 first quarter increased 55.0% to $24.8 million, compared to $16.0 million for the 2018 first
quarter. The $8.8 million increase in underwriting income is primarily related to an improvement in the current accident year ex-CAT loss ratio, an increase in favorable net-prior year reserve development, lower catastrophe losses, and an
increase in underwriting income related to the growth in net earned premiums.
|
•
|
Gross written premiums in the 2019 first quarter of $350.1 million increased $12.4 million or 3.7%, compared to the 2018 first
quarter. This growth was due primarily to Professional and Specialty lines, as Property and Liability lines approximate the 2018 first quarter writings. Geographically, the growth was primarily due to Bermuda (insurance) and Europe.
Bermuda,
which represented 58.8% of the overall increase, reported growth as a result of an increase in new business and favorable rate changes. Europe, which represented 41.1% of the overall increase, reported growth following the acquisition of
Ariscom in the 2018 first quarter.
|
•
|
Consistent with net written premiums, net earned premiums in the 2019 first quarter of $146.7 million decreased $5.7 million or
3.7% from the 2018 first quarter. As noted above, all major lines of business, with the exception of Property, reported growth in net earned premiums compared to the 2018 first quarter. The decline in Property related to the
aforementioned increased use of reinsurance and third party capital.
|
·
|
The loss ratio for the 2019 first quarter was 56.2%, compared to 52.0% for the 2018 first quarter. The increase in the loss ratio
was due to 2.3 points resulting from $0.8 million of net unfavorable prior-year reserve development in 2019 compared to net favorable prior-year reserves development of $2.8 million in the 2018 first quarter, 1.1 points related to 2019
first quarter catastrophe losses of $1.5 million, and 0.8 points from an increase in the current accident year ex-CAT loss ratio.
|
·
|
The current accident year ex-CAT loss ratio for the 2019 first quarter was 54.6%, compared to 53.8% for the 2018 first quarter. The
increase in the loss ratio was driven by increased ceded reinstatement premiums paid (which reduced net earned premiums) in the 2019 first quarter as a result of higher ceded loss recoveries on prior-year catastrophe events.
|
·
|
Net unfavorable prior-year reserve development for the 2019 first quarter was $0.8 million, compared to net favorable prior-year
reserve development of $2.8 million in the 2018 first quarter. The 2019 first quarter net unfavorable prior-year reserve development was driven by Liability lines largely offset by favorable development on Property losses related to
various prior-year catastrophe events.
|
•
|
Catastrophe losses incurred for the 2019 first quarter were $1.5 million. There were no catastrophe losses incurred in the 2018
first quarter.
|
•
|
The expense ratio for the 2019 first quarter was 37.5%, down modestly from 37.6% for the 2018 first quarter. The decrease in the
expense ratio related to a decline in personnel and other operating costs, partially offset by an increase in the acquisition ratio.
|
•
|
Underwriting income for the 2019 first quarter was $9.2 million, compared to $15.8 million for the 2018 first quarter. The $6.6
million decline in underwriting results was due primarily to the decline in net earned premiums, as a result of increased reinsurance and use of third-party capital, the quarter over quarter increase in catastrophe-related losses of $1.5
million, and the unfavorable change in net prior-year reserve development of $3.6 million.
|
March 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Total investments
|
$
|
4,903.5
|
$
|
4,787.0
|
||||
Cash
|
152.7
|
139.2
|
||||||
Accrued investment income
|
27.5
|
27.2
|
||||||
Receivables
|
3,334.6
|
3,338.2
|
||||||
Goodwill and intangible assets
|
270.1
|
270.5
|
||||||
Deferred acquisition costs, net
|
167.9
|
167.3
|
||||||
Ceded unearned premiums
|
562.5
|
457.7
|
||||||
Other assets
|
535.7
|
371.1
|
||||||
Total assets
|
$
|
9,954.5
|
$
|
9,558.2
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Reserves for losses and loss adjustment expenses
|
$
|
4,668.9
|
$
|
4,654.6
|
||||
Unearned premiums
|
1,344.5
|
1,300.9
|
||||||
Ceded reinsurance payable, net
|
1,047.1
|
970.5
|
||||||
Senior unsecured fixed rate notes
|
139.9
|
139.8
|
||||||
Other indebtedness
|
183.0
|
183.4
|
||||||
Junior subordinated debentures
|
257.0
|
257.0
|
||||||
Other liabilities
|
433.5
|
305.3
|
||||||
Total liabilities
|
8,073.9
|
7,811.5
|
||||||
Total shareholders' equity
|
1,880.6
|
1,746.7
|
||||||
Total liabilities and shareholders' equity
|
$
|
9,954.5
|
$
|
9,558.2
|
||||
Book value per common share
|
$
|
55.23
|
$
|
51.43
|
For the Three Months Ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Gross written premiums
|
$
|
760.8
|
$
|
710.5
|
||||
Net written premiums
|
360.9
|
367.1
|
||||||
Earned premiums
|
420.5
|
414.7
|
||||||
Net investment income
|
33.9
|
36.0
|
||||||
Fee and other income
|
2.3
|
2.0
|
||||||
Net realized investment gains (losses):
|
||||||||
Net realized investment (losses) gains
|
(1.7
|
)
|
15.2
|
|||||
Change in fair value of equity securities
|
54.2
|
(30.9
|
)
|
|||||
Net realized investment gains (losses)
|
52.5
|
(15.7
|
)
|
|||||
Total revenue
|
509.2
|
437.0
|
||||||
Losses and loss adjustment expenses
|
237.9
|
237.2
|
||||||
Underwriting, acquisition and insurance expenses
|
160.7
|
160.2
|
||||||
Interest expense
|
8.5
|
7.7
|
||||||
Fee and other expense
|
1.3
|
2.0
|
||||||
Foreign currency exchange losses
|
0.7
|
4.9
|
||||||
Total expenses
|
409.1
|
412.0
|
||||||
Income before income taxes
|
100.1
|
25.0
|
||||||
Income tax provision
|
8.9
|
0.2
|
||||||
Net income
|
$
|
91.2
|
$
|
24.8
|
||||
Net income per common share (basic)
|
$
|
2.68
|
$
|
0.73
|
||||
Net income per common share (diluted)
|
$
|
2.63
|
$
|
0.71
|
||||
Weighted average common shares:
|
||||||||
Basic
|
34.0
|
33.9
|
||||||
Diluted
|
34.7
|
34.7
|
||||||
Loss ratio
|
56.6
|
%
|
57.2
|
%
|
||||
Expense ratio
|
38.2
|
%
|
38.6
|
%
|
||||
GAAP combined ratio
|
94.8
|
%
|
95.8
|
%
|
||||
CAY ex-CAT combined ratio
|
94.1
|
%
|
95.3
|
%
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
U.S. Operations
|
||||||||
Gross written premiums
|
$
|
410.7
|
$
|
372.8
|
||||
Net written premiums
|
248.4
|
249.0
|
||||||
Earned premiums
|
273.8
|
262.3
|
||||||
Underwriting income
|
24.8
|
16.0
|
||||||
Net investment income
|
23.1
|
22.6
|
||||||
Interest expense
|
(5.2
|
)
|
(3.9
|
)
|
||||
Fee income (expense), net
|
0.2
|
(0.7
|
)
|
|||||
Net income before taxes
|
$
|
42.9
|
$
|
34.0
|
||||
Loss ratio
|
56.5
|
%
|
59.5
|
%
|
||||
Expense ratio
|
34.4
|
%
|
34.4
|
%
|
||||
GAAP combined ratio
|
90.9
|
%
|
93.9
|
%
|
||||
CAY ex-CAT combined ratio
|
90.9
|
%
|
92.7
|
%
|
||||
International Operations
|
||||||||
Gross written premiums
|
$
|
350.1
|
$
|
337.7
|
||||
Net written premiums
|
112.5
|
118.1
|
||||||
Earned premiums
|
146.7
|
152.4
|
||||||
Underwriting income
|
9.2
|
15.8
|
||||||
Net investment income
|
9.1
|
8.8
|
||||||
Interest expense
|
(2.8
|
)
|
(2.3
|
)
|
||||
Fee income, net
|
0.7
|
0.6
|
||||||
Net income before taxes
|
$
|
16.2
|
$
|
22.9
|
||||
Loss ratio
|
56.2
|
%
|
52.0
|
%
|
||||
Expense ratio
|
37.5
|
%
|
37.6
|
%
|
||||
GAAP combined ratio
|
93.7
|
%
|
89.6
|
%
|
||||
CAY ex-CAT combined ratio
|
92.1
|
%
|
91.4
|
%
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
U.S. Operations
|
||||||||
Loss ratio
|
56.5
|
%
|
59.5
|
%
|
||||
Prior accident year loss reserve development
|
1.5
|
%
|
0.4
|
%
|
||||
Catastrophe losses
|
(1.5
|
)%
|
(1.6
|
)%
|
||||
CAY ex-CAT loss ratio
|
56.5
|
%
|
58.3
|
%
|
||||
International Operations
|
||||||||
Loss ratio
|
56.2
|
%
|
52.0
|
%
|
||||
Prior accident year loss reserve development
|
(0.5
|
)%
|
1.8
|
%
|
||||
Catastrophe losses
|
(1.1
|
)%
|
—
|
%
|
||||
CAY ex-CAT loss ratio
|
54.6
|
%
|
53.8
|
%
|
||||
Consolidated
|
||||||||
Loss ratio
|
56.6
|
%
|
57.2
|
%
|
||||
Prior accident year loss reserve development
|
0.6
|
%
|
0.5
|
%
|
||||
Catastrophe losses
|
(1.3
|
)%
|
(1.0
|
)%
|
||||
CAY ex-CAT loss ratio
|
55.9
|
%
|
56.7
|
%
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Net Prior-Year Reserve Development
|
||||||||
(Favorable)/Unfavorable
|
||||||||
U.S. Operations
|
$
|
(4.0
|
)
|
$
|
(1.0
|
)
|
||
International Operations
|
0.8
|
(2.8
|
)
|
|||||
Run-off Lines
|
0.7
|
1.8
|
||||||
Total net prior-year reserve development
|
$
|
(2.5
|
)
|
$
|
(2.0
|
)
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Catastrophe Losses
|
||||||||
Catastrophe losses:
|
||||||||
U.S. Operations
|
$
|
4.0
|
$
|
4.3
|
||||
International Operations
|
1.5
|
—
|
||||||
Total catastrophe losses
|
$
|
5.5
|
$
|
4.3
|
|
Three months ended
|
|||||||
|
March 31,
|
|||||||
|
2019
|
2018
|
||||||
Net income
|
$
|
91.2
|
$
|
24.8
|
||||
Add (deduct):
|
||||||||
Income tax provision
|
8.9
|
0.2
|
||||||
Net investment income
|
(33.9
|
)
|
(36.0
|
)
|
||||
Net realized investment (gains) losses
|
(52.5
|
)
|
15.7
|
|||||
Fee and other income
|
(2.3
|
)
|
(2.0
|
)
|
||||
Interest expense
|
8.5
|
7.7
|
||||||
Fee and other expense
|
1.3
|
2.0
|
||||||
Foreign currency exchange losses
|
0.7
|
4.9
|
||||||
Underwriting income
|
$
|
21.9
|
$
|
17.3
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Net income, as reported
|
$
|
91.2
|
$
|
24.8
|
||||
Income tax provision
|
8.9
|
0.2
|
||||||
Net income, before taxes
|
100.1
|
25.0
|
||||||
Add (deduct):
|
||||||||
Net realized investment (gains) losses
|
(52.5
|
)
|
15.7
|
|||||
Foreign currency exchange losses
|
0.7
|
4.9
|
||||||
Adjusted operating income before taxes
|
48.3
|
45.6
|
||||||
Provision for income taxes, at assumed rate
(1)
|
7.2
|
9.1
|
||||||
Adjusted operating income
|
$
|
41.1
|
$
|
36.5
|
||||
Adjusted operating income per common share (diluted)
|
$
|
1.18
|
$
|
1.05
|
||||
Weighted average common shares, diluted
|
34.7
|
34.7
|
Three months ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Segment income (loss) before income taxes:
|
||||||||
U.S. Operations
|
$
|
42.9
|
$
|
34.0
|
||||
International Operations
|
16.2
|
22.9
|
||||||
Run-off Lines
|
0.6
|
(0.7
|
)
|
|||||
Corporate and Other
|
(11.4
|
)
|
(10.6
|
)
|
||||
Net realized investment gains (losses)
|
52.5
|
(15.7
|
)
|
|||||
Foreign currency exchange losses
|
(0.7
|
)
|
(4.9
|
)
|
||||
Income before income taxes
|
100.1
|
25.0
|
||||||
Income tax provision
|
8.9
|
0.2
|
||||||
Net income
|
$
|
91.2
|
$
|
24.8
|
U.S. Operations
|
Three months ended March 31, 2019
|
Three months ended March 31, 2018
|
||||||||||||||||||||||
Gross Written
|
Net
Written |
Net
Earned |
Gross Written
|
Net
Written |
Net
Earned |
|||||||||||||||||||
Property
|
$
|
64.2
|
$
|
7.4
|
$
|
31.5
|
$
|
45.6
|
$
|
18.4
|
$
|
34.7
|
||||||||||||
Liability
|
242.6
|
172.2
|
178.5
|
243.1
|
170.0
|
171.9
|
||||||||||||||||||
Professional
|
60.8
|
35.2
|
31.8
|
47.3
|
31.8
|
29.1
|
||||||||||||||||||
Specialty
|
43.1
|
33.6
|
32.0
|
36.8
|
28.8
|
26.6
|
||||||||||||||||||
Total
|
$
|
410.7
|
$
|
248.4
|
$
|
273.8
|
$
|
372.8
|
$
|
249.0
|
$
|
262.3
|
International Operations
|
Three months ended March 31, 2019
|
Three months ended March 31, 2018
|
||||||||||||||||||||||
Gross Written
|
Net
Written |
Net
Earned |
Gross Written
|
Net
Written |
Net
Earned |
|||||||||||||||||||
Property
|
$
|
155.0
|
$
|
8.4
|
$
|
35.6
|
$
|
154.3
|
$
|
30.7
|
$
|
58.0
|
||||||||||||
Liability
|
47.0
|
27.6
|
29.4
|
47.2
|
25.6
|
20.1
|
||||||||||||||||||
Professional
|
55.9
|
27.5
|
29.2
|
46.4
|
23.3
|
25.3
|
||||||||||||||||||
Specialty
|
92.2
|
49.0
|
52.5
|
89.8
|
38.5
|
49.0
|
||||||||||||||||||
Total
|
$
|
350.1
|
$
|
112.5
|
$
|
146.7
|
$
|
337.7
|
$
|
118.1
|
$
|
152.4
|
Consolidated
|
Three months ended March 31, 2019
|
Three months ended March 31, 2018
|
||||||||||||||||||||||
Gross Written
|
Net
Written |
Net
Earned |
Gross Written
|
Net
Written |
Net
Earned |
|||||||||||||||||||
Property
|
$
|
219.2
|
$
|
15.8
|
$
|
67.1
|
$
|
199.9
|
$
|
49.1
|
$
|
92.7
|
||||||||||||
Liability
|
289.6
|
199.8
|
207.9
|
290.3
|
195.6
|
192.0
|
||||||||||||||||||
Professional
|
116.7
|
62.7
|
61.0
|
93.7
|
55.1
|
54.4
|
||||||||||||||||||
Specialty
|
135.3
|
82.6
|
84.5
|
126.6
|
67.3
|
75.6
|
||||||||||||||||||
Total
|
$
|
760.8
|
$
|
360.9
|
$
|
420.5
|
$
|
710.5
|
$
|
367.1
|
$
|
414.7
|
For the Three Months Ended
|
||||||||
March 31,
|
||||||||
2019
|
2018
|
|||||||
Net investment income, excluding alternative investments
|
$
|
32.0
|
$
|
27.3
|
||||
Alternative investments
|
1.9
|
8.7
|
||||||
Total net investment income
|
$
|
33.9
|
$
|
36.0
|
For the Three Months Ended
|
||||||||||||
March 31,
|
||||||||||||
2019
|
2018
|
% Change
|
||||||||||
Net income
|
$
|
91.2
|
$
|
24.8
|
|
267.7
|
%
|
|||||
Adjusted operating income
(1)
|
41.1
|
36.5
|
12.6
|
%
|
||||||||
Shareholders' Equity - Beginning of period
|
$
|
1,746.7
|
$
|
1,819.7
|
(4.0
|
)%
|
||||||
Shareholders' Equity - End of period
|
1,880.6
|
1,787.4
|
5.2
|
%
|
||||||||
Average Shareholders' Equity
|
$
|
1,813.7
|
$
|
1,803.6
|
0.6
|
%
|
||||||
Shares outstanding - End of period
|
34.049
|
33.812
|
||||||||||
Book value per share, March 31, 2019
|
$
|
55.23
|
$
|
52.86
|
||||||||
Cash dividends paid per share, during the 2019 first quarter
|
0.31
|
|||||||||||
Book value per share, March 31, 2019 - including cash dividends paid
|
$
|
55.54
|
||||||||||
Book value per share at December 31, 2018
|
$
|
51.43
|
||||||||||
Change in book value per share for the 2019 first quarter
(2)
|
8.0
|
%
|
||||||||||
Annualized return on average shareholders' equity
|
20.1
|
%
|
5.5
|
%
|
||||||||
Annualized adjusted operating return on average shareholders' equity
|
9.1
|
%
|
8.1
|
%
|
(1)
|
For the purpose of calculating Adjusted Operating Income, assumed tax rates of 15% and 20% were used for the three months ended
March 31, 2019 and 2018, respectively.
|
(2)
|
The percentage change in book value per share is calculated by including cash dividends of $0.31 per share paid to shareholders
during the 2019 first quarter. This adjusted amount is then compared to the book value per share as of December 31, 2018 to determine the current period change.
|